WHAT started as a complaint from a suspicious King Island resident has culminated in a damning, landmark report into two of the state’s most senior and recognisable health imports.

In a 38-page report, tabled in the Tasmanian Parliament yesterday, the Integrity Commission painted a shocking picture of the behaviour of two health beauracrats with the job of overseeing the state’s health system.

In a report entitled “An investigation into allegations of nepotism and conflict of interest by senior health managers”, the Integrity Commission described the behaviour of Jane Holden (while head of the Tasmanian Health Organisation South) and Gavin Austin, (as head of the Tasmanian Health Organisation North West), as concerning and disappointing.

Jane Holden, the acting CEO of THO-South, was suspended last week while Gavin Austin, CEO of THO-North-West, was given until the end of yesterday to explain why he shouldn’t also be stood down.

Among the most damning allegations are that Ms Holden’s husband was paid nearly $200,000 over two years to perform building and maintenance work for which he was not accredited.

Mr Austin’s wife and son also were given high-paying jobs in his organisation outside proper processes, the report stated.

Under chapters titled “The Dream Team comes to North West Tasmania”, “A family business” and “Benefits to business associates” the Integrity Commission found the pair employed family members, commissioned consultancies with former associates and oversaw employment conditions the integrity watchdog deemed inappropriate.

The investigation by the commission, which undertakes its work behind closed doors and without the public’s knowledge, started after a resident at Currie, on King Island, made a complaint that Mr Austin’s son and Ms Holden’s husband had been employed as a builders on “health department” buildings on the island.

The report stated some employees told the commission they were uncomfortable being placed in the position of working with the CEO’s husband, and questioned the quality of work performed. One told the commission that he felt like leaving his position due to his “discomfort”.

The subsequent investigation revealed that family and associates of Ms Holden and Mr Austin were given consultancies, employment and contracts to their benefit.

“Sometimes these officers directly made the decisions that benefited their family and associates, sometimes those decisions were made by others who worked for Ms Holden and Mr Austin,” the report said.

“Conflict of interest was apparent in all of these matters.”

The report found that a culture of “spin and cover up” was adopted when legitimate questions were raised by the Mercury.

“Both the CEOs gave direct input to these media responses; both clearly endorsed this approach of deflection and less than accurate response,” the report said.

Fourteen months after the investigation was prompted, the Integrity Commission has raised concerns about 13 incidents over the past five years starting with how Mr Austin, a New Zealand accountant, came to be the chief overseeing the health system of the state’s north west.

The Integrity Commission has identified $500,000 in costs to taxpayers in payments that have come under a cloud of concern after a 14-month investigation.

A list titled “cost of noncompliance” itemises 11 transactions.

The indiscretions appear to have begun in 2009 when Mr Austin, who was known to Ms Holden, was given an $8494 consultancy for which there appears to have been no scope or terms of reference.

A month later Mr Austin secured a position of finance director for the North West health system, despite the Integrity Commission finding no evidence Mr Austin even had a job interview.

The job also came with perks not always afforded to others in such roles including 12 months of rent assistance at $285 a week that apparently continued even after his role was updated to that of Acting CEO of the North West health system in March 2011.

Over the next four years, questionable consultancies, using known associates of Mr Austin, totalled about $115,000.

A staff member Mr Austin employed, again under a cloud of concern, received $76,400 in rent and vehicle payments over two years.

Mr Austin’s son was paid $105,135 by a company for unskilled labour work from August 2011 to October 2012.

The report found Mr Austin’s son had no experience in the trade and there was a handwritten note on the registration form by an unknown Skilled Group employee: “[R]equested by client Dad is CEO of Hospital.”

For a time Mr Austin’s son worked with Ms Holden’s husband who was paid $197,681 for work it is alleged he was not qualified for.

The investigation found Mr Austin approved payment of more than $6000 for Ms Holden’s husband to return to New Zealand to obtain accreditation as a builder and also to become accredited in Tasmania.

Ms Holden’s husband was employed in 2013 in the South of the state while his wife was then working as the head of the Tasmanian Health Organisation South.

He got the job after he apparently reviewed the interview questions before his interview. But, Ms Holden’s husband was not the only spouse to have been subject of yesterday’s report.

Ms Holden signed off on a contract for Mr Austin’s wife, who went on for two further fixed-term positions, without advertisement.

One, newly created position for 9.5 hours per fortnight was deemed by the Integrity Commission to have been created to suit Ms Austin’s then circumstances.